WASHINGTON -- Construction of new homes increased by the biggest percentage in more than two years in April, a rare spot of good news amid the worst downturn in housing in more than two decades.

The unemployment rate edged down in April and employers cut far fewer jobs than expected, according to a government report yesterday, the latest evidence that the U.S. economy is undergoing a mediocre spell, rather than a disastrous downturn.

NEW YORK -- Wall Street turned in a mixed performance Friday as investors set aside some initial enthusiasm over a stronger-than-expected jobs report to lock in some of their recent gains. Blue chip stocks logged their third weekly advance in a row as investors grew more confident about the economy's ability to outrun a deep downturn.

The Federal Reserve cut a key interest rate by a quarter of a percentage point today, the seventh cut in as many months, continuing its efforts to guard the economy against a steep downturn.

WASHINGTON (Reuters) - The Federal Reserve lowered U.S. interest rates by a modest quarter percentage point on Wednesday and hinted the move could be the last in a series meant to buffer the economy from a credit crunch and housing downturn.

California's severe housing downturn claimed another fixture of the Sacramento-area home building industry Wednesday when John D. Reynen, co-founder of Reynen & Bardis Communities, filed for personal bankruptcy protection.

A host of real estate scams popular during the 1990s housing downturn are back this year and snaring unsuspecting homeowners and renters, say law enforcement and real estate officials.

The federal agency may aid those with little equity or cash for a down payment. With the housing downturn and credit crunch in full force, it might be time for home buyers and homeowners to learn more about a federal mortgage program launched during the Great Depression.

CHICAGO (Reuters) - Faced with a raging credit crisis and an economy that may be mired in recession, the U.S. Federal Reserve looks set to cut interest rates sharply on Tuesday in a bid to avert a possibly severe downturn.

In the Federal Reserve's battle to keep the U.S. economy from a severe downturn, the beleaguered dollar is getting walloped anew.